By Malcolm Stacey | Friday 17 February 2017
Disclosure: I own shares in one or more of the stocks mentioned. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.
Hello Share Squirmers. There was a rather unnerving fall for shares in Photo-Me (PHTM) in the middle of last month. It was based on a scare story that the quality needed for official id photos could be provided by mobile phones and so could be something of a challenge in the future for automatic photo machines.
There was not much proof for that and the company was quick to put out reassuring messages to the effect that this was not an issue. Indeed, it has a compelling list of reasons you may not have thought of against taking your own pic at home for official reasons.
I almost sold my shares at the time, because I hold rather a lot of them and I didn’t want to be exposed to any further falls. But, having studied the form, I decided to hold onto the entire collection.
A jolly good job, too, as the share price is now almost back up to speed - and I am now rather confident of further rewards in the next year or so.
One reason for my saying this is the innovations this very ambitious company is currently dabbling with. For example, it is interested in 3D photography for fun customers and also providing more sophisticated ID pictures. That may also dish any doubters.
Then it has another idea for turning your pictures into wallpaper. I’m not sure I’d want my family glaring at me from living room walls, but it could go down well with the younger set.
Meanwhile, the Japanese say they are restarting a national identity card scheme in March, something which should benefit Photo-Me hugely.
The P/E ratio is now 22.3 which is not too scary for a company with such future prospects. The operating profit has been rising year on year for the last five years which is always a good sign. The dividend yield I have is 2.83%.
And now I’m having my picture taken in the Punter’s Return.
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